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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (32546)	9/21/1999 9:03:00 PM
From: Proud_Infidel	Respond to of 70976

Jacob, AMAT has never traded at its current P/S ratio. Never But AMAT has never made as much profit as it has last Q, and at the beginning of the cycle yet! With NM's of 17%+(last cycle peak was 15% if I am not mistaken) this early, we could easily see 20% sometime next year. Few companies in history can be said to garner those types of profits, and as such are deserving of premium multiples. But at 27X($82/$3) FY00 eps, I cannot really say AMAT is overvalued here, especially since it should grow ~25% for the forseeable future and since their FY00 begins only about a month from now. BK